Entrepreneurship

Start-Ups Seize Marijuana Opportunities As Big Companies Hold Back

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The entire legal Cannabis industry is dominated by small businesses, Mr. Troy Dayton of the ArcView Group said, both because it is so new and because marijuana’s legality remains murky. Banks, for example, have been reluctant to take deposits or make loans to dispensaries because the drug is still illegal under federal law.

“You can’t have a national business,” Mr. Dayton said, because the laws vary by state. Opportunities for small businesses also exist because the stigma associated with the industry has discouraged bigger companies from getting involved. “You can’t find another industry growing at this clip that doesn’t have any major players,” he said. “That gives the little guy a chance to make a run at this.”

Troy Dayton is co-founder and chief executive of the ArcView Group in San Francisco, a network of 250 high-net-worth investors that backs cannabis start-ups.

More than 30 early-stage companies contact the group it every week last year, he said, the group sent about 2 million in funding to 14 companies.

When big business get’s involved it is game over for the small guys.

[SOURCE](http://www.nytimes.com/2014/08/07/business/smallbusiness/start-ups-seize-marijuana-opportunities-as-big-companies-hold-back.html?_r=0)

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“Start-Ups Seize Marijuana Opportunities As Big Companies Hold Back”